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Forecast 2015: IT spending on an upswing

Stacy Collett | Nov. 4, 2014
As purse strings loosen up, CIOs blend innovation into 2015 IT budgets, but security and cost containment remain top priorities.

And while IT leaders are finding ways to squeeze out extra budget dollars for their own innovation strategies, there's often even more innovation spending going on outside the department's purview -- a growing trend in large organizations. Today, 30% of IT spending happens outside the IT organization in large enterprises, and that figure could grow to 50% over the next few years, says Gartner's Gordon. In many cases, business units are bypassing IT and buying technology themselves to deliver products and services more quickly. The implications for IT departments include a loss of control over enterprise technology and perhaps a decrease in the amount of money allocated directly to IT for innovation.

Gartner sees the rise in what some observers call shadow IT as part of a shift toward what it has dubbed "bimodal IT" -- a moniker that conveys the idea that organizations need two speeds of IT: traditional and agile. Traditional IT is focused on strong efficiency and safety, approval-based governance and price for performance. Agile IT, on the other hand, is focused on supporting prototyping and iterative development, rapid delivery, continuous and process-based governance, and value to the business.

Gartner finds that organizations are most successful when they have two modes of IT -- with different people, processes and tools supporting each. "Often, that duality requires spreading out IT projects throughout the business," Gordon says.

 

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